Stock Bullish Support Line by Anthony Green

We recommend that you literally go through and evaluate the technical merits of each stock you are considering buying. Once you have determined a fundamentally sound inventory to work from, go through and write down the pros and cons (technical picture) of each stock you are considering for purchase.

Basically, it is the old saying, A picture paints a thousand words. You will be able to clearly see in writing the positives and negatives of each stock. Hopefully this will help you make sound, clear-cut decisions, without emotion.

When trying to narrow down your list, you should ideally focus on stocks that are in an overall uptrend (trading above their bullish support line), have positive relative strength versus the market and their peers, are on a point and figure buy signal on their trend chart, have positive momentum, and present a good risk reward ratio.

Bullish Support Line

The Bullish Support Line is one of the two main trendlines used in the point and figure methodology. This trendline is also called the uptrend line. Typically, it is best to buy stocks that are trading above their bullish support line.

The bullish support line is drawn when the stock has formed an apparent bottom. It should be started in the box directly below the lowest O in the lowest column on the trend chart, and then should move upward to the right at a 45-degree angle. If the stock is trading above this bullish support line, it is considered to be in an overall uptrend. A stock will often pull back right to the bullish support line and will hold, only to resume its upward bias. In essence, the trendline acts as a brick wall. Trendlines can be very helpful when making buy and sell decisions.

Ideally, investors want to buy or hold stocks that are in an overall uptrend, moving higher. When the bullish support line is broken or penetrated, it signals a change in the trend of the stock to negative, and suggests it is time to evaluate whether the stock should be sold.

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